- Leasing is quite common at 36 months, although it can be different of course.
- The Bank may take 20% interest rate.
- This scheme leaves the system as fully owned by the client at the end of lease; thus 0% value at Bank’s hands. It is assumed that the system has at least 36 more months to operate properly before refurbishing is required.
- Per this calculation by FitSmallBusiness.com (verified by other sources), the client pays USD 32,518 per month, which means they keep 3% of the value of copper they retrieve per month, after expenses and financing. Or, annually, they make USD 1.4MM or more per each SPOPP system they use to process copper tailings.
- In fact, a client who can afford to buy the system without financing can cover their costs in less than 6 months. But of course not everybody can pay USD 875k in cash, and there is always the risk that extraction rates will not be as high as expected, plus commodities price fluctuations. However, this calculation shows very easy financing from the client’s perspective, while the Bank earns well at USD 390,216 annually for each system financed.
- We don’t know the retrieval percentages of other metals, but with palladium for example costing USD 30,237,780 per tonne at the time of writing, we can calculate that a mere 0.01% extraction out of palladium tailings (1,700 times tinier than copper) would rival copper’s profits by more than double.
- With 211 million tonne of palladium mined globally in 2017 alone, and 20 million tonnes of copper (between many other examples), against an ongoing supply deficit of both commodities, we strongly believe that educated clients would want to closely look at the opportunity to own and operate more than one SPOPP system.